Earnings Call: Q2 2021

Aug 12, 2021

Completing the suite of services for ABLs and our omni channel approach. We've already launched 19 of the 120 stores, and we will be launching the 120 this year. We are already in the phase producing stores, and all of them are set up to meet the e commerce demands And 1P or 3P? And so our store is not a POS only. And so it's the relationship spot. And as the logistics will happen, accelerated for the sales online in each location. Our over 20,000 sales reps in stores really became an important lever, strengthening our strategy omni channel. In this quarter, we were responsible for over EUR 2.1 billion. Based on these advantages, we will accelerate our growth even more, So it's really we have accelerated entering the game. We are really excited with what's coming around. So now I would like to start with the presentation on the slides. Before I start talking about the first slide, which brings in our results, I would like to initially make a remark, which is after we launched our earnings that everyone's talking about our EBITDA. And I just wanted to highlight that the month of April, We had almost the entire amount of our stores to close. So this EBITDA that we're looking at this month is not our recurring EBITDA. This EBITDA is coming from what we were able to achieve in a strong recovery regardless of the source close. And what difference here in the last quarter is that this month of April, we do not have the government support with the corona voucher to help with the payment for the employees. So this is an expense we didn't have last year. And this year, we had it with all the stores open. So in the same way, the rental Negotiations also do not come in the same speed as the previous year because it was more intermittent in the periods of the closings. But I would like to mention that this EBITDA we are noticing in this quarter is not our recurring EBITDA. We continue to post a really light profit. We are more towards 7% and 7.5% which is what we were doing than the 2.2% that we are demonstrating now. And so now about the highlights here in this quarter, we are already trading that there is major consistency in the execution and gaining market share. In this Q2, despite having the stores closed in April, We added a record with over 4 bps in GMV versus the Q2 of 2020. And I want to remind you that in the Q2 last year, online for the company was really strong because the stores physical stores were closed. So we were able to reach a total RMB 11,400,000,000 in GMV gross MIMI, which is an increase of 51% compared to the 2nd This performance represents strong acceleration when compared to the growth in the Q1, which was 27%. So we were able to add a lot of growth into the 2nd quarter. 5% of the total GMV So 65% of the company's GMV is already operating digital. So here's some relevant data. In the second quarter according to the Compu PGP data, our online sales grew 36% compared to an evolution of 17% in the market. So we continue to grow more than double what the market is growing. As we had already disclosed, We are able to we went back to exchange data with Epi. And so we reviewed our customer base, represented an increase percent of total amount of the market. And in the next slide, we can see the share in the Epic and Autopram's comp income fees. So in the last 7 quarters view growth was greater than what the market is growing at and this demonstrates our strategy And our strong focus on growth and market gains in this quarter that was very challenging due to the social restrictions and the closing of the store, We had the option to expand our investments in order to attract new customers and promote various new categories that entered our ecosystem. We could have done this through cash back, free breaks, reductions and discounts or a combination of all of these factors, But we decided to expand the activation of new customers. And in our perspective, we were very successful with this. We had positive growth, gains in share. We grew double what the market grew Now we added 4,000,000 of new customers in our active customer base. Now about the 3rd quarter, Now what's going on is in July, for example, the market based on the comp in compi data, the market grew 8.5%. The month of July grew 43.9 percent based on Combrinkovic data, and the market without Via grew 3.4%. So in the month of July, we continued this trend of growth, gaining market share above market level. So up until 10, which is what we have defined here, the Total market with Via is growing 25.7 percent. Via grows 66.1 percent and the market without Via grows 20.4 So we gained 4.1 points of share in the month of July compared to last year, And we gained 3.7 market share until the accumulated amount on August 10 based on that of the comprico fee. So we continued also in the Q3 with an excellent pathway of growth. Now about Venerable Mine, it's been an important lever, our performance online and it is prepared and incentivized to sell products for 1P and P. So one interesting data is that about 30% of Our new customers are here. And we also have been able to reactivate many customers. 30% the customers that are serviced, our customers from our inactive customer base. So we're activating this a lot. It's a very important and powerful to add on new customers and activate customers that are inactive. And so this is an important differential for AMV In 1P and 3P, yes, customer acquisition and also recurring. And so it already was responsible for 18% of the sales on Marketplace. This is a big differential. Platforms that are just pure marketplace or pure digital does not have the sales rep. So we are heading towards a lot of places that people don't go to. So this is one of the big credentials and I'm going to be demonstrating this So now we're going to talk about the evolution And we're going to present the numbers we've been having in our marketplace. So, to highlight what I've already mentioned in the call and what we've been repeating ever Investor Day is that 2021 is the year of Marketplace FPL. So last year in June, we had 6,000 sellers. We had 10,000 sellers in the end of December. We started the year 2021 with 10,000 sellers. We reached 59 1,000 sellers are now in June. We've already in July, we've already reached 70,000 sellers. So when Arieco mentioned in MFA And we were confident that we would reach between 70000 to 90000 sellers this year. Well, We are already moving strong pace towards evolution. So we went on 3,000,000 last year and we already have 31,000,000 equity use platform. So we connected our first international partner, And if not, which allows for the sale of imported products from Asia and the U. S. And we will have Good news as well in the cross border and our marketplace. We can also highlight that we are not only a sales rep for electronics, we're very close to have the infinite shell, which really helps with the returns of customers. And the sales in the marketplace increased 85% reaching 22% of the digital sales. We almost doubled the numbers in 2020. In the 6 months of 2021, we've made 80 percent of our new reduced last year and repeat. This step forward in our marketplace and our capacity to generate demand and especially our capacity for Lyft. Here we've had evolution in all indicators. We've added more customers like to see into our portfolio. Will be reinforced by the SDG license which will fill in a gap for credit granting that's pretty underdeveloped by the Fintech in the Brazilian market. So if we take a look at the slide, As we talk about the opportunity that we've been seeing, I bring in a survey from my team that shows the trends for this in the American market. We know that major players for PNPL abroad, have installments and very few installments. But at the end of the day, this is It's like a pay now, it's like a buy now and pay later, which is basically what we've already done for many years, but of course, customize the needs and results. The main message here guys is not the potential for penetration for the right now pillar in the American market, but the conclusion of the study On the benefit that this tool adds to the ecosystem, this tool brings in high rates of conversion. It increases the volume of spending, it increases the number of customers, it increases the recurrence and it reduces the customer acquisition costs. So everything that the platforms normally search for, these kind of tools can add on to. So on the next slide, as we take a look at our numbers here And our history, no other players in Brazil have the legitimacy and tradition and experience offer credit as Vida is really a pioneer leader in the buy now, pay later mortality. Here, there's no discussion. We are Well, as you think, we certainly have a long history and potential that can be developed that we are exploring very well. On this slide here, we can see and prove the main benefits in transparency, frequency, loyalty and including customers in our base. The increase in the penetration to 31% represents a growth of 56% compared to the share we had in our financial year in 2020. So we continue to intensify this tool and expanding more of its share. In recurrence, we can notice in the graph on the right that 51% of the customers that perform this use of payment method with us continue to be loyal. They generate returns. They have a new Customer credit journey even before the current journey is kept in an interest manner in our ecosystem. So this adds on another 150,000 new customers per month. Everything we have seen in that McKinsey study, we can see reflected the anomaly. When you take a look at the slide on the left side, we can see the evolution of our credit the physical parts and the distribution of customer preapproved per region in the last 12 months, we are adding more and more customers that are preapproved into our ecosystem. On the right side, we noticed the major capacity to add new customers coming from our digital credit platform. As an example, you can see the Northeast region. This is the 2nd line. And we have stores in 82 municipalities. And through online credit, we were already able to reach 3 61 municipalities where we do not have stores. So It's peer adds, new customers and major returns. So in total, we reached 1,000 by 20 municipalities that we've never where we never had physical presence With an transfer improvement in December next quarter. So we had a question with the production of our digital payment booklet Our buy and I'll pay later system. So once again, we're talking about inclusion here. And in the next chart, it's really interesting to take a look at the slide. If we consider the Brazilian market now, in the left bar, approximately this number where it is a bit, 10% of Brazil buys online. From these that file mine, 62% buys through credit card. 37% through debit, which is like a barcode fill, unpicked. So when we listen to our customers, what we identify is that 41% of our customers are rejected or have their credit canceled or they don't have the necessary limit to perform a purchase. The same percent consider that credit cards are and some are not interested And 44%, who has already worked on this online journey with us, declared that without the digital buy now pay later system, you would not be able to have access to those products. So there's a setting of the market that demonstrates the level of the population without access to credit represents an addressable market in the next 5 years of $486,000,000,000 So if you can check out the size of the market in this level of the population. And the good news for Via is that we know exactly how to interact with the population and Very few can reach this level in the way we do, but it's almost one of our exclusivities And Brazilian Retail. On the next slide, About Benqi, our portfolio will be strengthened by the life insurers able to use STP that will fulfill this GAAP in access to credit is very under explored by FinTech operating in the Brazilian market. On this slide here, we bring in some of the KPIs that banking has That demonstrates this growing trend in performance. So we're growing very strongly in the amount of download. We've already reached 2,600,000 accounts opened In Binky, we really scale up the number of transactions. So we have BKK820 1,000,000 in CPV. The banking transactions are already being very relevant in the transactions for our e commerce and the transactions of our stores. So we're really in this journey that's very strong with banking. And we are going to continue to accelerate a lot from now on And we're going to start providing personal credit with this full background that the company has with access and the capacity to grant credit with low risk. So on this slide, we are presenting the CPV of the Co branded cards and the seller. The acquire we purchased in the end of April. We have partnerships with 2 Private in the co branded card modality, Bradesco and Casiballen Itau at Ponto and over 2,500,000 customers with cards that generate 1,500,000,000 in TPB monthly. In the seller network that was where we say acquired the TPB in the 2nd quarter reached 3 $25,000,000 and the seller already performed over $5,000,000 transactions. It's already present over 33,000 POSs and it's already relating to over 255%. In the earnings call for the Q3, we will provide details of how seller has been evolving and how it's really integrated with Venky a very powerful journey with our individual investors and also with our So our financial service platform is composed by 3 verticals: products, credit products for access to retail products. So this is our buy now, pay later with a co branded card, our digital account on Bancu, which really intends to include new customers and the access to and the relationship through new credit offers such as personal loans that was just started and support to consumption in marketplace that starts off with IT as well as our entry with legal entities together with seller with offering of credit and bank accounts and credit to small micro entrepreneurs. So our platform is really robust. And in the 3rd quarter, we're going to provide a lot of details on this integration between Bemki and Zsella. Now about another asset that's very important is logistics. So our logistics have been advanced in a very consistent manner. We have been able to deliver in the entire country and we have light and heavy transportation. This is a very important differential. It's really easy to transport light items in Brazil, but we've already delivered a 20 are already delivered through our stores. So we understand that omnichannel is vital to operate quickly and efficiently in Brazil. We're going to demonstrate the benefits of the logistical costs we've been gaining in this quarter. So we were able to deliver 100% of Brazil, as I've already mentioned, and in 2,500 cities in 24 hours. So now as we talk about journey of having the customer really as the center of our business, we are expanding the offer of services using our own network, which already represents 51% of our deliveries. So it was something the market was curious about to understand what kind of a share in each of the networks in our business and now we're presenting it here. So we've already implemented the switch of omni channel products. So customers that buy online, They can perform the exchange journey in our store. Once again, this is a very important benefit here We decided performing the collection of this item when we have this choice, and I think it's worth it to test these heavy items in the marketplace platform and really have the return to check out how this happened. Normally, you're placed into contact with the sellers to find the solution for this return. In our case, it was already pretty much in place in our business model and we operate it. So the seller can already perform the drop off at our store. So it's really in advance in our network servicing sellers more and more. Our delivery model is already tested and ready to scale up. And through our Last Mile platform has a blog. We can really start deliveries for partners out of collection right at the spot with the delivery. We're ready for this and we have over 300,000 delivery guys in this platform. Our fulfillment starts off now in the Q4, as I've already mentioned, for the seller and opportunity openers. And we address and end the cycle in our service level logistics out of the company. So now a bit about the numbers from customers. Customers are always at the center of our strategy in the company, so we continue to advance their strategy. Everyone here at Via really embraced it with the launch of different offers for an increment of 18% in our active customer base to $26,000,000 in the second quarter. The access And if we were to add up the M site, which is also in the mobile journey, We already have over 75%, while the average revenue per customer in our app, Apple grew So we've already started to experiment customers adding on other items into the cart. And Customers really are adding more and more items to the car and that's reflected here in our On the next 5, you can see some of the initiatives for loyalty, free currency for customers, and optimize adding up to the biggest offer of SKUs and the number of sellers in our marketplace. And our buy now, pay later includes some of the factors that really explain the strong increase in the average expenses customers with on and off as well as multichannel customers. We see evolution in all of the modalities regards to the previous year. On the right side graph, you can see that our customer base also been going through major rejuvenation. And with this, we've been able to attract a younger audience. We've had growth of 72% in share of customers between 8% to 24% and 14% among customers that were 20 So after major success with the launch of the TV Play in April, we were able to just launch on to customers that provide for unlimited access to streaming services including films and series And up until the end of the year, for all of the customers that buy technology products at Banco for TVs, cell phones, have it, video game and desktop console. So with the engagement and the content between entertainment An increase in customer base, we've announced in July the hiring of the head creative head for games, which is one of the with FUXXO. And this contributes to our strategy and they also help create exclusive content for gamers and customers FIO is already a leader in this game category, and this will reinforce even more our presence in the segments. Games and consoles and equipment were the categories that most grew, where we gained market share in the 1st semester this year. And so this growth this announcement of the partnership really grew, generated a lot of post and sharing. So about the social networks in the Q2, we also highlight in the main social media about engagement. And in the end of July, we were able to reach the highest level of engagement. Yes, we're not only talking about retailers or online players, but we're talking about all of the brands in Brazil overcoming levels that as the network as for example even. We're strong in our strategy to add new customers and increase engagement in these customers. All of the advances of the customer and this has been our focus ever since we started, have been appearing in our improved NPS scores with ongoing evolution. So in the same way, our assessment and Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Would not be possible without ViaHub, which has demonstrated in major past presentations. There were over 1300 deliveries down the 2nd quarter, totally focused on the increase of GMV and test for satisfaction. The 1300 deliveries represent 2.5 times more deliveries than the average we had last year. And this really gives us the confidence to continue with this and the delivery of all of the to confirm that we've demonstrated at Investor Day. So now I wanted to quickly pass on to Javier, And he will provide some details on the numbers again, and then I'll be back a bit more ahead for a Q and A session as well. Thank you very much. Good afternoon, everyone, and thank you for participating. I will quickly go over some of the highlights on our performance financially. And so Slide 35 presents beside the quarter also the semester compared to the previous period. And the first highlight is the growth in the gross GMV, 51%, as Alberto mentioned. And in the semester of 38.25%, which was also very important highlight in the net revenue of 49% in the 2nd quarter and 33% in the 2nd semester. The gross margin and EBITDA have a drop compared to last year, basically due to many different elements, especially the duration on the stores closed in both quarters as well. Last year, there was a benefit, as I have to mention, with contracts labor contracts on rental. This quarter was different because those were closed in different periods and in different locations. And this also brought in importance in the dilution of our expenses. So The gross margin was also representing a small drop in the accounting gross margin. We'll see operation is stable in the quarter. So we ended with 30, 60 and there was a fiscal benefit here last year And the EBITDA margin was up 12% or BRL 185,000,000 against BRL565,000,000 in previous year And in the investor, EUR 1,000,000,000,000 with the drop of 9% and the net income versus trends and we go from $65,000,000 last year with the full credit to $132,000,000 with a full credit as well as a suspension in this quarter and growth of 103%. So all of these factors bring in a lot of difficulty to compare their quarters. We believe we have a net margin that's a lot better. And in the quarter, we ended with We ended in call this year a growth of 3 times. And in the next slide, we are providing some details on this, gross margin, the EBITDA margin and the net margin. In this case, operations. So the operational EBITDA margin is growing at 4.5% in the quarter in this measure of $130,000,000 to $1,069,000,000 and The net income was from a loss last year to EUR 45,000,000 in this quarter. And in the sense, we have operational losses of BRL163,000,000 with profits of BRL 109,000,000 in this quarter. To make the comparability a little better and have more of a profound analysis on the operational efficiency of the company. In this quarter, we eliminated the cement effect with the fiscal incentives on sales. And it's to mention that is the carriers is highly operational. And so, differently than other We present, especially in the last line, a net income of $132,000,000 with an adjustment of $87,000,000 it goes $45,000,000 with a net margin of $178,000,000 to $0.60 I'm going to explain this a little better with the composition of this So now with the explanation here of the main variables in the gross profit in this quarter So we did a bit of penetration and volume in the production of the portfolio, the payment booklet, And we also lose some services and extended warranty and assembly services, which brings in an impact this quarter of about 2 percentage points. And we had some benefit as well with the improvement of the commercial margins. And so, it's not a fiscal credit and it's a tax That I paid double and I didn't have to pay in 2021. And this is totally captured in our online comments. And so This way we can compensated to gain in the commercial margins. And we have a significant gain to $2,419,000,000 due to the net revenue growth. So it's important to mention, 12th quarter with COVID, with stores closed and provide dimension, basically resumed in the month of Mother's Day, the normalized margins cost about 32%. If we were to consider the operational expenses in 2020 and the operational expenses in 2021, we had an impact of approximately $108,000,000 because the stores were closed during that period We really leveraged many different elements in our digital business and a better channel mix, more investments in social media, marketing, reinforcing the post sale structure, call center and other expenses also as delivery as well as our technology team that was internalized. We had new business opportunities integrated to the business, which represented EUR 1.4 billion and EUR 0.34 billion. So On the contrary, there is strong gain in productivity using our potential logistics and also with the pickup from stores and many hubs. And such as 1.7 for all the other expenses back office and And finally, with the same comparison of last year with the net income, We said that we left from losses of EUR 176,000,000 to a profit of EUR 132,000,000 EBITDA 0.20 in the improvement, and we're able to have strong gains in depreciation, basically due to the dilution due to the growth of the sales because we're able to add on very little and a recovery of about $236,000,000,000 3 points. There is also the capitalization of the company with a follow on in June last year. Obviously, considers a full year of this effect in our accounts, but here we have very relevant returns. And it's important to mention also that This result is strongly benefited by the fiscal incentive as well. As I mentioned, it's not a credit that's merely There's a strong operational characteristic and that's why it's completely related to the sale of products in R1. On the next slide, we present our position financially and our cash flow for the quarter. And here I want to highlight that we have a low in the cash this quarter. By the pandemic, we brought in important improvements in our working capital. As we mentioned many times, we had investment in the last three quarters And the inventory also due to the risk of the lack of rise in the period of the second wave Since last year, we are already under recovery period with the normalization of the working capital is one of the initial facts. The 3rd and 4th quarter rep represent the full normalization. This quarter as well, we've presented the beginning of The monetization profit for fiscal credit, which was a major promise since the market wanted to see this we're presenting this year and also the cash consumptions was due to the acceleration of our investments in this quarter of strong cash generation of about $756,000,000 in the last 12 months the investments made in working capital and despite the effect that the stores closed due to the pandemic. And here I also want to highlight in the year The beginning of the monetization process and acceleration of the investment by about EUR 627,000,000 In the Slide 43, we have the CapEx this semester totaling RMB 366,000,000 and BRL 227,000,000 in technology, BRL 58,000,000 in expansion. And We must say that we are accelerating the process for the expansion and improvement of our physical store and also investments in our infrastructure. And also the last slides in our presentation. During Q and A with our cash We have a solid cash position of R6.7 billion dollars And Here also with our debt amortization curve, we can see that it is really balanced So now we are heading to the Q and A session now. And I believe our first question comes from The analyst from Credit Suisse, Peter. Peter, you may proceed. Thank you, Denis. I'm glad to mention Some questions that we had about the margins, the EBITDA margin and one of the second main questions was about the evolution of take rate. The company had a double digit take rate. This number dropped to 7% in the Q1, now 5% in the Q2. So I want to understand why there's this drop and what you guys are imagining in this dynamic. I think the market is creating a lot of theories Because of the company's stance and also concerned with competition, so if you could maybe talk about this, it would help us a lot. Thank you, Victor. First, about the margin, I believe that I already kind of mentioned the answer, but the main impact here from this quarter with the store closing. And so if we were to take a look at the margin, after product, there are not major problems. There was an absence of production and more acceleration also generating a bit more of a margin because we had about 1 month without a store sale. In regards to the take rate, we had already declared strategy to have the evolution of the marketplace, providing this possibility for the sellers to experiment within our platform. So we're following exactly the track that had been designed. We are not changing this. So if we had not had The store closing, we would have had a really interesting quarter in the margins and people wouldn't be concerned if they're like, oh, you increased the marketplace and the margins of the company dropped. But that wasn't the effect. It's not that we can't do this one day if we want to, but that was not the effect this quarter. In this case, As I had mentioned, the take rate is not our main target here in Marketplace. Our main target is the revenue we bring in through the Paymapa and through logistical services and the relationship that Bemke will have with all of its ecosystem. So We are investing and building in a major marketplace platform and the take rate is one detail in this way. So in a quarter, normally where everything is open, the take rate doesn't really mean much. But if you rely only on the take rate, that will be a problem Sure. For us, this won't be a problem. Okay. Thank you, Peter. Thank you, Peter. I also have a quick announcement here. If you're watching us on your phone and you want to submit a question, just select And so the next question comes from Joel from Citi. Thank you. Good afternoon, Danny. Thank you so much for Bharat from AGGIA for the call. Taking advantage of this discussion here on the services that you guys are going to be providing to the sellers when you consider from the logistical perspective, especially you mentioned that should be operational in the Q4. I think it will be interesting if you could maybe cover a bit of the scope or the notion of the fulfillment and how much you expect to reach and penetration in your seller base when it becomes operational and understand how this can influence your take rate effectively. So a second point here also would be about the international partnerships, right, and categories that you guys are adding on. I think it would be interesting to understand how you guys consider this relevant in the partnerships in the future. What kind of categories Can influence your mix and your assortment up ahead? I think that would also be interesting. Thank you. Jean, thank you so much for that question. About penetration, we had a quick acceleration here and an increment in the seller. So we have $70,000 We have about 50%. The numbers have been kept at around 50% despite this quick acceleration of onboarding that we had. And it's maintained at about 50% all the way to Giviran's net logistical network. And now we are already at the phase where it can really perform the drop off here at our any of our stores and we can perform the delivery. Important to mention here is that If we were to take a look at the players in the market, the reference player now in the market took Almost 4 years to reach 20% penetration in fulfillment. So it's not something that we're going to have from night to day. We plan Do this a lot quicker and we've been demonstrating that we can do things that are a lot quicker than the average in the market. So we will have excellent offers for fulfillment to the seller. And as I already mentioned, it's going to be a different kind of equipment. It won't be limited to our own platform. Our proposal is to really be the logistical operator for the pellet for any marketplace that they carry on. So as we transition around this among competition and performance delivery, our portfolio here is to become the logistical partner of the seller for any sale they do, any kind of ecosystem. And besides this, we will also start fulfillment to other categories as well that maybe are not in our ecosystem Thank you so much. Thank you to all for the questions. So now I'm going to ask, I'm going to invite Bob from Bank of America. You can submit your question, Bob. I might have some problem with disconnection. So we're going to continue here as we head off to the next question. Thank you for the presentation and for taking my questions. My question is about the financials and the business. So we've noticed that there's significant growth in the portfolio year on year. We know that this is leveraged by the return of the stores, but also the online payment book as demonstrated. And so especially in the online, we want to understand the results you've noticed in this route and how the default has been behaving in this part of the portfolio. And this could be an interesting lever for growth and as part of the financial business, credit, it would be interesting to understand the size we expect to have in this portfolio and the practical impact Thank you, Gabriel. Well, just about the credit granting journeys, it has been scaling up and we've been measuring We're really happy with what we're facing as a result, which is why we're really exponentially growing even more. In the physical journey, in the online journey, it's very similar. But even cases where it's smaller than the physical journey. In the online journey, we have a customer that is choosing to perform this a few times less and we also operate with a level that's a little more competitive and generate less default. So in markets now, Well, we're already noticing some color harvest and what we're seeing in the store. Yes. So the practical impact of Benqi becoming an STD, yes. The practical impact of this represents Starting off credit granting for customers, which is disconnected from the sale of the products, its credit will be And getting the customer wallet digitally and they'll consume wherever they feel they should and how they can proceed best. And so we started a little before this. We were using another player before this, While we couldn't, and now with S and P, we are doing everything internally. So the first measurements are really in the initial phase, And they're really exciting. So we're really happy And with the default rate that's in place and as we've done with the payment book where we launched We also have this in this concession and we'll scale up on this. So the results are that we will probably have the biggest fintech credit granting for Class B because this know how that we have in here with Caboz Bay, especially all of its Understanding of the consumption profile and people, we are applying to Benqi. So We believe we'll have the biggest credit granting cost So next year we'll enter this credit card journey. Bank you will have their own credit card that starts from next Yes. Personal loans are already a reality. We're already measuring the evolution and portfolio and adding on scalability as we feel this kind of confident. Great. Thank you for your answers. Thank you, Gabriel. Well, our next question comes from Joseph Jordan from JPMorgan. You may continue. Hello and good afternoon everyone. Thank you for answering my questions. So just a few here. I wanted to for the evolution of the marketplace. And I understand from you, you're trying to have more of a different kind of approach, setting some business plans with sellers that have more scalability. So I want to understand the percentage in marketplace sales that come from these bigger partnerships. And also understand a bit of the take rate Reality, when you take a look at other players, it expands already. So I don't know if there's a technical issue in the industry. And I want to understand if you see this as a long term factor or so also to change EBITDA on the topic I wanted to understand the capacity you guys have preapproved at the bank. I know you guys have like $4,500,000,000 and I wanted to understand the size that this And try to understand how this will be operating the P and L because IFRS, we have to have provisions based on risk loss and also finally the expansion strategy. So we've the company heading towards the Northeast, the law. And I want to understand how you guys are noticing the performance of these new stores. Understand that it may be a little early to measure this, but any kind of insight would be great. Thank you. Just on the sellers here, we are not going to be strategically talking about How its interrelation and proportionality is between the terms. But what I can say is the following. In the market, you have free freight cash back here just This is happening basically from the lower scale sellers with the sellers that are larger scales were really not messing much with the pay grade. So we are noticing that the smaller scale sellers having a big volume, which really leads us So as I mentioned, it's a strategy of ours. Each one in the market has their strategy. And for quite a while, they would ask me why I didn't have cash backs. And for quite a while, I explained why. But now our strategy is to have the take rate and invest in the take rate to the sellers And the strategy to keep the relationship with the seller due to the fact that in our perspective, Medi P understand that we have other strong points here at BIA. And if they are well developed, they generate strong profitability in the If up ahead we decide to resume growth or not, And it's a decision we're going to have to take a bit more of ahead. It's really early. We just had a strong upside in the amount of sellers. There's a lot of sellers to enter still. And this month of July, we That VA will provide. So I don't know if I answered that one. Stephane, I won't be able to present as an answer here. In regards to Benqi and Elbiti expansion in the North Northeast, Especially in the North, this is a region that is not very occupied by us. We were present there. And as we start entering, we are noticing a boom in the digital resorts with the exponential growth in the online in the markets where we're entering. So entering this market has really exponentialized The online sales we've already had in this market. So considering that the stores are not only And it became logistical habilization and our logistics have been really facilitated in these markets where we're entering, considering that 50% of online sales operate through the store, the last mile takes place through the stores. So we're going to enter about 150 cities in a 1 year range. So it's significant expansion. It's going to be a new market growth, new sales, new oxygen. And We really have a lot of market share to take in these markets we're entering. It's been a real success Due to the fact that the Cabo Verde brand that we've been using to expand is already recognized nationally. When we open up the The question is not us calling new customers, but the customer is asking why we took so long to get here. So customers like this relationship with us and we reach the market really taking in all the differences I've already narrated with all the attributes that we have such as buy now pay later, a major experiment in 1P, now in 2P as well, The online sales rep interacting with this level and All the different occupancies in the market, and we really had a lot of success. Now bank, we actually, As I mentioned, it will be the credit distributor in our business. So we talked about the payment book to asset service. So the buy now pay later that we see abroad, I'm going to forget that composition that there is interest free and So if we consider the players they add in the retailers and it becomes a payment method. And so our bank, we will be credit as a service for other players out of our And here the seller network is fundamental because in the next call, I think we'll be really comfortable in presenting the strategy with the result of the personal loan. And also in regards to the volume of financing in this modality, when we had the follow on, We addressed 300,000,000 for this modality. And so we will begin with this 300,000,000. There are many possibilities of how we can be funding this. So We already have the $200,000,000 allocated to begin this ramp up in the personal loans segment. So do you want to add anything else? I think it's important to talk about this credit line we have with the pre I don't know if the question was just about the new modality for personal loans that we've been providing true banking or if it's the entire Permica as a whole. In the current model, Before we had the license, credit repair was only possible in the CVCI modality with Icapac, but now with this license, we can also have CVC operations within We believe this will be multiplied by 8 and 9 times. And But recall Buy Now Pay Later is already pretty old and in the digital model it's a lot easier. So it's a high level of acceptance and there's high penetration digital and high acceptance also among the younger guys that are really navigating on youth. So the modality for personal loan is really similar to the payment booklet. So we consider revenue per skill and throughout the context. And the forecast We had some peak in the Q3 last year also due to the pandemic positive, and then it was never lower or above 5%. So We are very confident in this with this history that we're able to operating in the payment book list. So we're really comfortable with this Calabralta head of business here and he started a process to register this Customers have already preapproved. So they were basically signed up for that and we already had this credit analyzed and we granted credit. So We don't think it's going to be very different than what we already know about in the level of profitability in the So once again, we're going to be scaling up and measuring this with all the necessary responsibility. And so Thank you very much, everyone. Thank you, Joseph. So now we're going to continue here. We have some other questions in line. And now I'll call Hashayedi from Goldman Sachs to submit his question. Hi there, Sunny. Good afternoon. Thank you for the call. You guys talked a bit about the offer for the payment booklet for customers And also for the sellers, there's a new steps to expand the offer of services in the marketplace. But I wanted to know what are other additional services, and actually logistics that you consider to And then important to expand this offer. And the second question here would be, maybe you've already talked about this in the physical store. How have you been moving along with interest sales compared to 2019? Is it already a little more normalized or? Thank you very much. Well, thanks for that question. We have a lineup of systems of services that need to be added in BenQ. There's a pretty big list. And that's a pretty long list here. Additional elements that we're going to be adding on to our ecosystem. But at this moment, really, we are really focused on with the presentation we're going to be working on with seller, but we also have payment links in the middle, supplier management to the sellers, all of these degrades. There's a lot of stuff coming from there. From retail, so we're going to be launching the ad platform. So this is also an important process during the Investor Day, I don't remember everything. We signed a lot in the Investor Day about the next We have the design for next year pretty much ready. And so technology team is really accelerated. And more and more This is becoming more precise to be developed because everything we've been developing, we're going to be engineering with microservices into the cloud. And so we track as quick development and generating the strong accelerated transformation we're seeing. So I think those are the two points. And yes, if you can maybe just talk about thanks for the answers. If you could talk about the And give us an understanding of how you've been Seeing the performance in the 3rd quarter, yes, it's high digit compared to 2019. Let's remember that in 2019, we had The second quarter pretty much did not exist. And so it was like below 20. And with all of this in e commerce, We have same stores sales growth as well compared to 2019. Great. Thank you, Roberto. It's the indicator that we've most understood as comparable to 2019 if we consider In 2020, 2021, if we consider those stores closed, if we compare that against 2019, we consider the productivity of the sales rep. So They grew 11% compared to 2019 in the Q2 of 2021. So that's on Page 22 of the release. And you can see that this is positive despite having about 20% online Now we have above 60. If you could open up the streaming so they can submit their question. Can you hear me? Yes, we can hear you. Thank you so much for answering my question. I wanted to A question about all you've been noticing is the lack of inputs overall, semiconductors, among many industries. And have you guys noticed any kind of challenge to replace inventory with electronic equipment? You had mentioned that a big amount of the sales came from Components Connect games. And Semiconductor is also having some issues with China with the introduction and have you guys noticed any kind of challenge with this? If yes, do you have any idea of how this could impact the next quarter? And Also, have you guys had any difficulties in regards to the increase in the prices and the reception of the customers? Okay. In regards to the first point, we normally have a major strategy operating in 1 piece, and we have a logistical center and capacity for this. And so we already performed major anticipation in regards to what we're going to be buying. And we've done this last year for this year as well. We are suffering a bit less. And so due to the major anticipation that we have with the industry, and so last year, we had pretty much the volume of this entire year placed in industry. So it's a differential we have. We know how to play the game right and we have this scale and capacity do this, we have more than 1,200,000 square meters in the logistical center and another 1,500,000 square meters in logistical areas, which is why we've been expanding this level of inventory. So some occasional problems. I can say that we have nothing that affect the entire category. So let's say, if they have like 10 items in that category, We may have problems with 1 or 2 items, but we have another 8 items for the sale. So about the transfers, we have already performed all of the freight transit. So sales in the 2nd quarter already considered this transfer. So we noticed that we do not installments and in our case, up until now, I've already considered the numbers in July August. So up until now, we've been operating even with these many transfers. Thank you very much. We had some more people that had to drop off due to other appointments And also because of the extended schedule, I'm going to read a question that was submitted by email by one of the analysts that had to leave, Andrew from Morgan Stanley. And he submitted it here. So we'll answer the question and then we'll have the question also that was submitted before. Basically, he was very interested in the issue with logistics as a service that we're going to be opening the overall market And our logistical platform and then he asks about how the clients are doing with the services and What kind of customer we are considering for this kind of service and if we have to perform any other investments And what we want here is some complementarity to provide more scale with the reduction in costs, and we're already providing these services to some other retailers as well from different segments than the 1P segment. And so this is already happening. I'd say that we've already gone past that phase of success and started with transforming the reality. As I mentioned, we already have a ready platform to scale up the issue with the deliveries and receipt and the payment upon delivery. And so this allows us to operate with any kind of thing. So we don't necessarily need to buy food delivery companies to perform the delivery. We already have the solution As a blog, this is already ready. So I'm not going to say we're going to do this or not, but we may come to it. So We're going to search for scale and productivity in our logistical network. So we have a big differential and this is a national logistical network and as an entity, half of it is already our own network. And so we want to consider all of this and a few others and have profitability as well through this service. Thank you. I'm glad that it seems that we don't have any other questions now I wanted to thank you all. We are really happy with We already have $31,000,000 at the end. So things that people take years to do And our growth is already as a digital company. So we We've had a growth figure that's out from an analytical company. We're already at a growth pay just as a digital company. So our NPS is also growing more than 15 points compared to the previous year. And maybe the most relevant data here in all the situations that we're gaining market share in a very consistent manner every quarter. So it's not like Via will be a reality. Via is already a reality. We are already a digital player that's been gaining a lot of share upon other digital players. So our platform certainly has important differential that really bring in major advantages. So We expect that the market at some moment will understand this. We are already a digital company that's already moved at a growth caker of a digital company. That's why we are already following this path and we still have The good news is we have a lot more to evolve in. We made this very clear on Investor Day where we're heading to and so we have an entire journey to go through with our FinTechs and with Financial Services. One advantage that we only have is pretty incomparable. If you consider for the market pace that we did a little while back, we had one relevant player in Brazil with a Credit granting Class C, the reference layer is up. So we're way ahead. No one's close to what we have in this. And what's more, making the marketplace way from back then, it's not complex. It wasn't simple, but it's not that complex. We were able to build it quickly. Now building this dish suite with precision in Credit Brands where we're able to grant a lot of credit to their customer base And we have a very low default rate cost of 2 years and maybe 1,000,000,000 in losses and this is we've already sold. So I just wanted to mention that we are really focused here on following major businesses growth. The team is very motivated. And following this journey for transformation, I want to thank you all for participating in our call and have an excellent afternoon.